13.0 Long-Term Financial Liabilities
Learning Objectives
After completing this chapter, you should be able to:
- Describe long-term financial liabilities and their role in accounting and business.
- Describe notes payable, and explain how they are classified and how they are initially and subsequently measured and reported.
- Describe bonds payable, and explain how they are classified and how they are initially and subsequently measured and reported.
- Define and describe other accounting and valuation issues such as the fair value option, defeasance, and off-balance sheet financing.
- Explain how long-term debt is disclosed in the financial statements.
- Identify the different methods used to analyze long-term liabilities; calculate and interpret three specific ratios used to analyze long-term liabilities.
- Explain the similarities and differences between ASPE and IFRS regarding recognition, measurement, and reporting of long-term payables.
Introduction
This chapter will focus on the basics of long-term debt, such as bonds and long-term notes payable. Each of these will be discussed in terms of their use in business, their recognition, measurement, reporting and analysis. Other, more complex types of financial liabilities such as convertible debt, pension liabilities, and leasing obligations, will be discussed in future chapters.
Chapter Organization
